1. Economics Final Sides Game

2. Page 1 of review guide

3. Branch of economics concerned with individual firms
microeconomics

4. This exists when resources are limited
scarcity

5. Branch of economics concerned with aggregate supply and demand

6. The next best alternative; given up when deciding to do one thing over another
Opportunity cost

7. “Anywhere” buyers and sellers meet for transactions
markets

8. Government answers economic questions
Command economy

9. Buyers and sellers answer economic questions
market

10. 3 economic questions
What, how, and for whom to produce

11. Best measured by per capita GDP or average income
Standard of living

12. Carrot and sticks
incentives

13. A non-tangible “good”

14. Study of the use of limited resources and unlimited wants and needs
economics

15. Four factors of production
Land- natural resources
Labor- workers
Capital- man-made (tools and equipment)
Entrepreneurship- ideas and risk

16. Page 2 of review guide

17. Ability to out produce= ____ advantage
absolute

18. Ability to produce at lower opportunity cost = ____ advantage
comparative

19. When more of one thing requires less of another
Trade-off

20. When more of one thing does not require less of another
Free lunch

21. See PPF handout

22. See S + D handout

23. Page 3 of review guide

24. A maximum price
ceiling

25. Minimum wage is an example of a
floor

26. Illegal markets that defy price controls
Black markets

27. C + I + G + NX
GDP

28. When real GDP decreases for 6 months, unemployment rises, and spending decreases
recession

29. When GDP is increasing
expansion

30. 16+ working or seeking employment
Labor force

31. Unemployed due to lack of skill or undesirable skill
structural

32. Unemployment due to recession
cyclical

33. Measure of inflation based on price change of a “fixed basket” of goods
CPI

34. Pollution from a factory is an example
Negative externality

35. Increase in customers to surrounding businesses is an example of
Positive externality

36. Largest variable in GDP/Largest sector of the economy
Consumer spending/consumer sector

37. Smallest variable in GDP/Largest sector of the economy
Net Exports/Foreign

38. Page 4 of review guide

39. Owned by stockholders
corporation

40. Most prevalent business type
Sole proprietorship

41. Subject to double taxation
corporation

42. Least common business type
partnership

43. A few firms dominate industry
oligopoly

44. Many firms selling IDENTICAL products
Perfect competition

45. Many firms selling differentiated (but similar)products
Monopolistic competition

46. Give an example of a monopoly
PPL
PA wine and spirits
Post office
DeBeers (back in the day)

47. Page 5 and 6 of review guide
These were recent